Consumers are Increasingly Likely to be in Bundles. Cable TV Subscribers in Bundles are Less Likely to Switch

LPG: US. 43% of consumers say that they live in a household that currently receives a bundle of TV, phone or Internet services from a single company. This is an increase from last year when 33% of households received more than one service from a single provider.

In addition, cable subscribers who receive a bundle of services are less likely to switch from cable TV service than those who receive just a single service from their cable provider. Overall, 7% of cable subscribers receiving bundled services from their cable operator are likely to switch from cable TV in the next six months – compared to 12% of cable subscribers who do not receive bundled services.

• 58% of those with annual household incomes over $75,000 currently receive a bundle of services from one company – compared to 34% of those with incomes below $50,000

• 47% of individuals age 18-54 receive a bundle of services from one company – compared to 32% of those age 55 and above

• 88% of cable Internet subscribers also get cable TV service, while only 48% of DSL subscribers (in areas where cable is available) subscribe to cable TV service

The combination of TV, high-speed Internet and telephone services is becoming increasingly important for both providers and consumers. Those who are most likely to receive bundled services tend to be younger and wealthier than average. And as importantly, bundles appear to be providing the desired 'stickiness' for operators.

Cable & DBS: Competing for Customers 2006

Publ 20060424